HomeMy WebLinkAboutItem #02 Approval of Second Biosolids Disposal Agreement with MaxWest Environmental Services`` %
Ocoee
rlorida
AGENDA ITEM COVER SHEET
Meeting Date
March 18. 2014
Item #
Contact Name:
Contact Number
Charles K. Smith, P.E
407 - 905 -3159
Reviewed By:
Department Director: Char s i
City Manager: Robert Fr ,
Subject: Second Biosolids Disposal Agreement with MaxWest Environmental Systems
Background Summary:
The City of Ocoee Wastewater Treatment Facility currently receives and treats approximately 1.68
million gallons per day of wastewater from its customers, producing near 1700 wet tons per year in
biosolids (activated sludge). Until February 2012, the City utilized a lime stabilizing and land
spreading through a service provider to dispose of the activated sludge. Land application as a
disposal method was and is still under pressure from regulatory agencies, environmentalists, and the
general public; and its future remains uncertain.
Thus, the City selected a "Greener" disposal method whereby the wet sludge is mechanically dried
and then cooked to release stored volatile gasses. The gasses are then burned to cause further wet
sludge to be dried and cooked. The byproduct from the drier /gasification process is a non - sludge ash
that is easily disposed of and is environmentally friendly and the opportunity to capture heat for other
uses.
The City Of Ocoee entered into a Biosolids Disposal Agreement (herein referred to as "agreement ")
with MaxWest Environmental Systems, November 1, 2011, which had located a drier /gasification
facility at the City of Sanford's South Water Resource Center. The original agreement was for two
years and expired October 31, 2013. A benefit of the agreements was the City's right -of- a- first-
refusal to later locate a drier/ gasification at Ocoee's treatment facility, which would offset a portion or
all of the City's sludge disposal cost.
Attached is the "Second Biosolids Disposal Agreement" with a three -year term and two one -year
extensions. The changes to the agreement are as follows:
• Due to improved sludge pressing performance the Biosolids (cake) disposal decreased from 40
tons per week to 28 tons per week which is reflected in the agreement
• Improved sludge pressing performance also directly reduced the minimum monthly invoice
amount from $6,500 to $,4500 which is reflected in the agreement
• Actual rate(s) did not increase and additional rate savings for drier biosolids has been added
• MaxWest is no longer providing dewatering (belt press) operational support
• MaxWest will provide backup sludge storage when needed due to MaxWest operational Issues
• Provision for an incremental decrease in disposal cost per ton of biosolids with increasing %
solids of dewatered cake above 15.75% solids
• Minimum monthly invoice amount decreased from $6,500 to $,4500
Issue:
Please Should the City enter into a "Second Biosolids Disposal Agreement" with MaxWest
Environmental Systems.
Recommendations
Motion for City Commission to accept the "Second Biosolids Disposal Agreement" with MaxWest
Environmental Services Inc. and to authorize the Mayor to execute the agreement; and authorize City
Manager to procure the service of MaxWest for Fiscal Year 2013/2014 for $90,000.00.
Attachments:
Second Biosolids Disposal Agreement with MaxWest Environmental Systems
Financial Impact:
Fiscal Year 2013/2014 approved funding of $138,000.00, which included an increase in production, a
new contract negotiated rate, and a contingency. Based on second agreement terms, actual
production to date and fluctuation during wet weather, the estimated cost for disposal should be
between $85,000 to $90,000. The following table reflects the historical allocations and expenses for
biosolids disposal.
Annual Biosolids Disposal Budgets and Expenses
Fiscal Year
Approved in Budgeted
Expensed
Notes and Descriptions
2006/2007
$
175,000.00
$
164,411.00
2007/2008
$
175,000.00
$
187,730.61
Poor Operation Condition of the Press
2008/2009
$
242,112.00
$
296,729.26
Due to failed sludge press
2009/2010
$
228,800.00
$
152,964.78
New Press During Fiscal Year
2010/2011
$
228,800.00
$
103,221.50
2011/2012
$
170,000.00
$
106,089.15
Improved Press Operation
2012/2013
$
132,000.00
$
87,012.94
Further Improved Press Operation
2013/2014
$
138,000.00
$
85,000.00
Projected Expense
Type of Item: (please mark with an V)
Public Hearing
Ordinance First Reading
Ordinance Second Reading
Resolution
Commission Approval
Discussion & Direction
Original Document/Contract Attached for Execution by City Clerk
Original Document/Contract Held by Department for Execution
Reviewed by City Attorney
Reviewed by Finance Dept.
Reviewed by ()
N/A
N/A
N/A
For Clerk's Dept Use:
Consent Agenda
Public Hearing
Regular Agenda
2
SECOND BIOSOLIDS DISPOSAL AGREEMENT
THIS BIOSOLIDS DISPOSAL AGREEMENT (the "Disposal Agreement ") is made and entered into
this 2014 by MAXWEST- SANFORD, LLC, a Florida limited liability company
(herein "Seller "), and the CITY OF OCOEE (herein "Buyer ").
RECITALS
WHEREAS, Seller owns and operates a gasification system at the Sanford South Water Resources
Center in Sanford, Florida; and
WHEREAS, Seller has a contract with the City of Sanford (the "Energy Agreement ") to gasify the City's
biosolids and supply energy to operate the Biosolids Dryer; and
WHEREAS, in accordance with the Energy Agreement, Seller can enter into agreements with private or
public entities to accept and process additional fuel sources in the gasification system; and
WHEREAS, Seller & Buyer has previously entered into an original " Biosolids Disposal Agreement,
dated November 1, 2011, both parties realized mutual benefit from the existing agreement, desires to
continue said mutual benefits desire to enter into a second contract for the disposal of said biosolids;
and
NOW THEREFORE, in consideration of the mutual covenants herein contained and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties above
named hereby agree as follows:
1.0 Recitals. The foregoing recitals are incorporated herein by reference as though fully set forth below.
2.0 Seller Responsibilities. The Seller agrees to undertake the following obligations pursuant to this
Disposal Agreement.
2.1 Seller will provide Buyer disposal services for biosolids delivered to the Seller's gasification
facility located at the City of Sanford South Water Resources Center.
2.2 Seller will treat and dispose of approximately 28 tons every week of biosolids.
23 Seller shall periodically sample the biosolids for compliance with the chemical characteristics
as shown in the Specifications Table attached hereto as Exhibit A and shall have the right to
reject any loads which do not generally comply with the characteristics outlined in Exhibit A.
Buyer and Seller will sample on a daily basis or each truckload at the Buyers facility before
the truck is moved from the belt filter press area to establish the average monthly percent
solids for billing as shown in the table in Section 3.3.
2.4 Seller does hereby agree to provide transportation services to Buyer and Buyer does hereby
agree to hire from Seller the following described transportation service:
Transportation services for biosolids generated at Buyer's facility.
2. Adjustments to this contract must be based on the Consumer Price Index (CPI).
3. Increase /decrease mileage to disposal sites may be considered.
4. Increase /decrease mileage may be considered due to regulatory rule changes
that may significantly affect the disposal of residuals.
5. Other potential causes for adjustment may be brought up for negotiation with
Buyer.
2.5 Fees for the above services will be based on the total number of tons transported.
2.6 In the event that transportation cannot occur due to a Seller equipment failure or Seller's
Biosolids transportation provider, Seller will mobilize additional resources to correct the
situation within twenty -four hours from notification as described in Section 4.0.
2.7 Seller will endeavor to accept biosolids delivery at all times as outlined in this agreement. In
any case, during times, Seller is unable to accept Biosolids, Seller shall provide to Buyer
empty trailers and service to relocate these trailers once trailers are filled. These trailers may
be stored at the Buyers facility until reasonable time which Seller can transport and process
Buyer's Biosolids.
3.0 Buyer Responsibilities The Buyer agrees to undertake the following obligations pursuant to this
disposal agreement.
3.1 Buyer shall be responsible for operating the belt filter press.
3.2 Buyer shall provide approximately 28 tons every week of biosolids produced by Buyer's
facilities. The biosolids shall be delivered in approximately ( +/ -20 %) equal volumes a
minimum of two days per week during normal work hours, excluding national holidays.
3.3 Buyer shall test a representative sample on a annual basis for compliance with the chemical
composition outlined in Exhibit A. Buyer warrants and represents that it will only deliver
materials substantially in compliance with the chemical composition as outlined in Exhibit A
and shall be responsible for all disposal costs if material does not comply with Exhibit A.
3.4 Buyer shall pay Seller at a rate per truck per ton of biosolids delivered for processing from
the table below, which includes the price for transportation by Seller of biosolids. Buyer and
Seller will sample on a daily basis or each truckload at Buyers facility at time Biosolids are
loaded into trailer. Buyer and Seller shall come to an agreement on Biosolids % solids of
dewatered cake for each truck load and the disposal cost shall be based on the following
table:
% solids of dewatered cake
Price per ton for transportation and disposal
18.00 and above
$45.00
17.50 to 17.99
$46.00
17.00 to 17.49
$47.00
16.50 to 16.99
$48.00
16.00 to 16.49
$49.00
15.75 to 15.99
$50.00
15.00 to 15.74
$51.00
14.50 to 14.99
$52.00
14.00 to 14.49
$53.00
13.50 to 14.99
$54.00
13.00 to 13.49
$55.00
3.5 Buyer agrees to an annual price per ton adjustment based on the Consumer Price Index (CPI)
effective January 1" of every year.
3.6 Buyer may elect to deliver liquid biosolids at a maximum 3% dry solids if their Belt Press is
out of service. In this event, Buyer shall pay seller a rate of 9.5 cents per gallon for transport
and processing.
Services shall be invoiced on a monthly basis based on the tons of Biosolids received at Seller's
facility. Buyer agrees to pay Seller all amounts due within 30 days of invoice date. A late fee of
2
one and a half percent per month will be charged on late payments and a collection fee of 5% will
be charged on all payments not made within sixty (60) days of the due date.
4.0 Re_ieetion by Seller Seller and Buyer will coordinate schedules in the event Seller's facility is not in
service to utilize storage at both Sellers and Buyers Facilities Seller may reject biosolids if the
material does not meet the criteria described in Exhibit A and /or if acceptance will cause permit
violations.
5.0 Title Title to biosolids passes to Seller immediately upon Seller's removal of biosolids from
Buyer's belt filter press facility. WHEREAS, Seller & Buyer has previously entered into an
original "Biosolids Disposal Agreement, dated November 1, 2011, both parties realized mutual
benefit from the existing agreement, desires to continue said mutual benefits desire to enter into a
second contract for the disposal of said biosolids; and
6.0 Minimum Invoice Amount It is understood by both parties to this Disposal Agreement that
Seller shall incur significant capital, operations, and maintenance expenses to make disposal
capacity in Seller's gasification system available to Buyer, regardless of whether Buyer actually
supplies the minimum level of biosolids to Seller pursuant to this Disposal Agreement. It is
therefore agreed that the minimum monthly invoice to Buyer shall be $4,550.00 if the tons of
Biosolids delivered to Seller is less than 75% of the estimated tons to be delivered per month. In
the event the Seller is unable to accept biosolids in a timely manner that cause the monthly total to
be invoice to be less than the minimum monthly invoice amount then the provisions of this
paragraph shall not be applicable.
7.0 Term The term of this agreement shall be three (3) year from the date of the execution hereof. An
two(2) —one (1) year mutually agreed upon extensions.
8.0 Venue, Applicable Law, and Severability This Agreement shall be deemed to be a contract
made under the laws of the State of Florida, and shall for all purposes be construed and enforced in
accordance with the laws of the State of Florida. In the event that either party deems it necessary to
institute legal action arising from this Disposal Agreement, such action shall be instituted in
Seminole County, Florida. If any provision shall be held invalid or unenforceable, the validity and
enforceability of the remaining provisions shall not be impaired
9.0 Force Maieure In the event any party hereunder fails to satisfy a requirement imposed by this
Agreement in a timely manner, due to a hurricane, flood, tornado, or other Act of God or force
majeure, then said party shall not be in default hereunder; provided, however, that performance
shall recommence upon such event ceasing its effect.
Signature on Page to Follow
3
IN WITNESS WHEREOF, the parties hereto have executed this document the day and year first above
written.
MaxWest- Sanford, LLC
By:
Printed Name
Title:
Date:
CITY:
CITY OF OCOEE, FLORIDA
S. Scott Vandergrift, Mayor
ATTEST:
Beth Eikenberry, City Clerk
(SEAL)
FOR USE AND RELIANCE ONLY BY
THE CITY OF OCOEE, FLORIDA;
APPROVED AS TO FORM AND
LEGALITY this day of
20
APPROVED BY THE OCOEE CITY
COMMISSION AT A MEETING
HELD ON , 20_
UNDER AGENDA ITEM NO.
SHUFFIELD LOWMAN, P.A.
City Attorney
4
Exhibit "A to Biosolids Disposal Agreement"
?V-Tech Analytical
Laboratories, Inc.
City of Ocoee
1800 A.D. Mims Road
Ocoee, FL 34761
11-09-324
at: http ✓1Www.tri- techlabs.com
PARAMETER METHOD RESULT DATE ANALYZED UNITS
Arsenic
60100
12.5 U
09/20/11
mg /Kg
Cadmium
601 O
0.675 U
09/20/11
mg /Kg
Chromium
601 O
11.2
09/20/11
mg /Kg
Copper
601 O
321.0
09/20/11
mg /Kg
Lead
601 O
13.5
09/20/11
mg /Kg
Mercury
7471B
0.349
09/22/11
mg /Kg
Molybdenum
60100
19.4
09/20/11
mg /Kg
Nickel
601 O
14.4
09/20/11
mg /Kg
Potassium
601 O
0.759
09/20/11
mg/Kg
Selenium
601 OC
15.0 U
09/20/11
mg /Kg
Zinc
601 O
846.0
09/20/11
mg /Kg
Percent Solids
2540G
0.99
09/22/11
%
pH
9045D
3.0
09/21/11
Units
Total Nitrogen
CALC
5.5
09/23/11
mg /Kg
Total Phosphorus
365.4
2.8
09/22/11
mg /Kg
U = Compound was analyzed for but not detected to the level shown.
* Analyzed under DOH #E83182 & E82277.
Test results contained in this package meet the requirements of the National Environmental Laboratory
Accreditation Conference and /or state specific certification programs, as applicable.
Reviewed By : X.E
Title : Quality Control Director
Date Reviewed : October 7. 2011
P. O. Box 140966.Orlando, FL 32814 -0966 • (407) 275 -8463
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